Cut spending now?
By faisai
@faisai (1138)
Hong Kong
June 20, 2009 2:10pm CST
There is no wonder that most people are cutting their spending on good reasons. We need to prepare for the worst so they are cutting their spending to prepare for the worst. But then is it they are preparing for the rest or they are making it worse?
When we are cutting our spending, the retailers are then hit hard and so is their suppliers and so is the suppliers of the suppliers, etc. When these companies are not making as much profit or even go into the red zone, they will have no choice but cut their cost such as lowering salaries of employees or even laying off them.
Thus, we either see salary cut or even not even working at all and thus we tend to need to prepare more for the worst now.
So, when we are cutting our spending just like everyone else, are we preparing for the worse to come? Or are we causing it to come?
2 people like this
1 response
@cobrateacher (8432)
• United States
21 Jun 09
Hi, fasai!
I think it works both ways. Many retailers are realizing that they have to carry less expensive merchandise, or it will not see. I've cut my spending in every way I can thin of, as there have been pay cuts, and necessary costs have gone up. Instead of the old $15 co-payment for medications, it's now $50, and I keep begging my doctors for generic substitutes. Those are only $4 per refill. Filling up the car with gas has become an outrageous expense, so I plan carefully to drive only when absolutely necessary. I go to the library instead of buying books, and find less expensive version f cleaning products for the house, and avoid the little goodies I used to buy with the groceries. Still, I can't always make ends meet, and that kills me!
